A 2009 review of Powell County Fiscal Court found several problems with how money is handled at the jail, plus $48,088 worth of missing and undeposited receipts in the jail commissary, according to the audit released Tuesday.
The report was referred to the Kentucky attorney general's office for further review because of the missing receipts.
The audit also notes that the jail is "extremely susceptible to fraud" because of the high volume of cash transactions, and state Auditor Crit Luallen makes several recommendations to reduce the risk.
Luallen's audit found that the county's financial statements fairly represented its assets, liabilities and equity from cash transactions and revenue received, and expenditures paid in conformity with a modified cash basis of accounting, according to a news release.
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The audit, which covers the fiscal year that ended June 30, 2009, also found that the county's general, jail and disaster emergency funds had deficits totaling $856,048.
In regard to money missing from the jail commissary, the audit said $6,014 in collections was not deposited into the bank from April 1 through June 30, 2009. It also says that $39,102 in collections was not deposited from July 1 through Feb. 26, and that $2,972 in cash from booking and bond/release fees was not taken to the county.
On Feb. 25, $9,318 in cash, checks and money orders were recovered from a deputy jailer's car under a spare tire, leaving $29,784 missing, the auditor said.
The auditor said the jailer should ensure that all collections for each business day are deposited daily and reconciled to the daily checkout and the receipts journal. Any discrepancies between the daily checkout sheets and receipts journal to the bank deposits should be investigated and explained, the report says.
Jailer Melvin Rogers said Swanson Inc. took over the commissary on Feb. 18, and the company takes orders two days a week, according to a news release from the state auditor.
"Two people are initialing each receipt for cash and two people are taking daily deposits to the bank," Rogers said in the release. "The only days that are missed are days where there is no cash activity."
Rogers said that he has the only key to the bond box and that he keeps track of cash and record-keeping in the bond receipt book with one other person.